Gift cards remain one of the most popular gifting and reward options, with billions spent in Australia each year. But alongside their popularity comes a rise in scams — particularly card draining, where funds are wiped from prepaid gift cards before they’re even purchased or activated.
As these scams become more sophisticated, it’s important for both businesses and consumers to understand the risks and adopt effective strategies to stay protected.
How to Protect Yourself from Physical Gift Card Scams
If you’re shopping in-store, keep these simple checks in mind:
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Inspect the card: Avoid purchasing cards that look tampered with — scratched-off panels, missing digits, or exposed PINs are red flags. Report them to the retailer immediately.
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Keep your receipt: Whether buying for yourself or as a gift, receipts are vital proof of purchase and may help resolve disputes in cases of fraud.
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Buy from trusted sources: Always purchase from reputable retailers or legitimate providers.
At Rewards Come True (part of the iGoDirect Group), we make secure delivery a priority. All physical gift cards are sent via express post with Australia Post or by courier with signature on delivery. For added protection, clients can opt for two-factor authentication (2FA) for higher-value cards (e.g. $500+), ensuring funds are safeguarded before activation.
Why Digital Gift Cards Offer Greater Security
Digital prepaid gift cards eliminate many of the risks associated with plastic cards, which physically store sensitive details such as numbers, activation codes, and PINs.
By design, digital cards are more secure:
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Encryption and tokenisation: Sensitive information is encrypted, while the card number (PAN) is replaced with a unique token — protecting data even during transactions.
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Two-factor authentication (2FA): Platforms like True Rewards require recipients to verify their identity (via email and SMS) before activating their card.
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Mobile wallet protection: Once activated, cards are stored in secure wallets such as Apple Pay or Google Pay, adding another layer of fraud prevention.
Get Started with Safer Gifting
Digital rewards are fast becoming the go-to choice for businesses across corporate rewards, consumer promotions, and cashback programs — offering speed, flexibility, and enhanced security.
Book a demo with our True Rewards specialists today to explore solutions that not only delight your recipients but also keep your gifting safe from scams and fraudulent activity.